Data. Definition. Disclosure: three ‘D’s fundamental for green finance
Ravi Menon, the Managing Director of the Monetary Authority of Singapore (MAS), gave a keynote speech on ‘What we need to do to make green finance work,’ at the Financial Times Investing for Good Asia digital conference on 8 September. The full presentation is well worth a read, emphasising the importance of making sure that strong disclosure requirements are in place as green investments become more mainstream.
“To make green finance work effectively, we need to solve the three ‘D’s – data, definition, disclosure,” he argued. “We must: improve the quality, availability, and comparability of data; develop compatible definitions or taxonomies for green and transition activities; and implement a consistent set of global standards for disclosures and reporting.”
Menon also discussed the establishment of green finance in Singapore, and affirmed that early next year MAS will set out its regulatory expectations on disclosure standards that retail funds with an ESG (environmental, social, and governance) investment objective must meet.
